1. What do the terms Exempt and Non-exempt mean?
These terms relate to the overtime provisions of the Fair Labor Standards Act (FLSA). If a job is FLSA exempt, it is exempt from the overtime provisions of the FLSA (i.e., not eligible for overtime) no matter how many hours are worked. If a job is non-exempt, it is eligible for overtime pay for any hours worked over 40 hours in the workweek.
2. How are jobs determined to be exempt?
There are three (3) tests for determining if the work qualifies for exemption from overtime provisions of the law. Unless there is a specific exception, all of the following must be met:
- The Salary-Basis test requires that an employee be compensated on a salary or fee basis.
- The Salary Level test requires that an employee be paid at or above $47,476 per year ($913/week), per the university’s practice, for the job to be considered exempt from overtime requirements.
- The Primary Duties test compares the work performed with the criteria established by various tests for exemption under the FLSA.
If you have questions about these tests, please contact your HR professional.
3. Can part-time employees be classified as exempt? 
Yes, if the employee is in an Exempt job and is paid at least $913/week, per the university’s practice, the employee can be considered exempt under FLSA, regardless of FTE status or number of hours worked.
4. Can part-time employees’ salaries be prorated in order to meet the salary minimum?
No. The salary level test states that employees must make at least $913/week, per the university’s practice to meet the salary level requirement. The minimum threshold establishes a baseline that must be met, regardless of FTE status or the number of hours worked per week.  If an exempt job title is selected, and the salary level threshold of $913/week, per university’s practice, is not met, then the position will be paid an hourly rate of pay.
5. Will all employees in the same job title have the same FLSA status?
Since FLSA status (exempt or non-exempt) is determined based on the job, all benefit-eligible employees within the same job title will have the same FLSA status. There is an exception for part-time employees who are in an exempt job title because their part-time salary level may not meet the FLSA Salary Level test which is required for the employee to be classified as exempt. Thus, if an employee in an exempt title does not meet the Salary Level to remain exempt, they will be classified as non-exempt and paid on an hourly basis.
Date created: 11/24/24
Reviewed 2024-11-21